Staying Alive – Blockbuster Gets a Lift
Blockbuster has secured $675 million in new debt (due in 2014) which will be used to pay off old debt. The loan is nice and cheap at an 11.75% interest rate and represents 94% of par value. Blockbuster is continuing its aggressive cost-cutting strategy in hopes that people will stop using the internet and go back to renting VHS tapes.
Blockbuster is dead. Goodbye $675 million.
(H/T – @RetailTraffic)
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They may be dead – but if you're a landlord like I am, then it at least means they should be paying their rent for the rest of the lease term! So thank you bond holders for continuing to pay our rent until BBI dies.